Latest news with #AdebayoAdelabu
Zawya
14-05-2025
- Business
- Zawya
Nigeria needs $10bln annually for stable electricity — Minister
Minister of Power, Adebayo Adelabu, has stated that for Nigeria to achieve functional, reliable, and stable electricity, the country requires no less than 10 billion dollars annually for the next ten to twenty years. He made the disclosure during the commissioning of the 600kW and 3MW Solar PV Power Plant at the Nigerian Defence Academy, Kaduna, on Tuesday. He noted that there are foundational bottlenecks that have been experienced in the past, which must be addressed for this level of investment to be meaningful. 'Number one is the legislative and policy foundation, which this administration has achieved by signing the Energy Bill into law. 'This bill has ensured the liberalisation and decentralisation of the power sector, enabling all levels of government—federal, state, and local—to legally and morally play roles in the power sector for the benefit of their citizens at sub-national levels. 'This has granted autonomy to more than eleven states, with more expected to follow. These states can now participate in the power sector, from generation to transmission, distribution, and even metering.'* 'Secondly, we must address the infrastructure deficit, which has accumulated over the last 60 years due to a lack of maintenance and insufficient investment to revitalise our transmission grid.' The Minister also emphasised the need to bridge the over 50 per cent metering gap, stating that the Presidential Initiative aims to achieve this through the installation of 18 million meters over the next five years. He said the commissioning of the 600kW and 3MW Solar PV Power Plant at the prestigious Nigerian Defence Academy underscores the Federal Government's resolve to tackle the electricity deficit. 'These projects, implemented by the Federal Ministry of Power and the Rural Electrification Agency, not only underscore our commitment to improving electrification across key institutions in Nigeria, but they are also part of our broader mandate to diversify energy sources, expand access to clean and reliable electricity, and support critical sectors of national development, including education and security. 'As an institution that combines academic rigour with military excellence, the Nigerian Defence Academy represents a strategic national asset that must be strengthened through sustainable infrastructure. 'Powering the Academy with renewable energy aligns with our vision for a secure, self-reliant, and energy-efficient Nigeria. 'It also reflects our commitment to President Bola Ahmed Tinubu's Renewed Hope Agenda, which prioritises accelerated national development through universal energy access.' The Managing Director of the Rural Electrification Agency (REA), Abba Abubakar Aliyu, described the commissioning of the 2.5MW solar project as 'a turning point in Nigeria's journey towards energy access for learning institutions.' He noted that 'the agency is not just commissioning a project, but rather commissioning social impact, research, and sustainable development.'
Zawya
08-05-2025
- Business
- Zawya
Nigeria: Minister, Atomic Energy Commission mull collaboration on power generation
As part of the efforts towards expanding the scope of electricity supply to Nigerians, the Federal Ministry of Power has begun moves to collaborate with the Nigeria Atomic Energy Commission (NAEC) to increase power generation and make supply more stable, effective, and reliable. The Minister of Power, Chief Adebayo Adelabu, disclosed this when he received the Acting Chairman of the Commission, Engr. Anthony Ekedewa in his office in Abuja. Adelabu said the collaboration would boost power generation and stabilise the power sector as part of the reforms being undertaken in the sector. As an advanced level of power generation, the minister said the country would benefit significantly from a nuclear power plant especially, with the technology that will come in as it will make power generation less cumbersome. He said the participation of the commission in the power sector was long overdue and promised to work with the agency. Adelabu, however, advised against the proposed establishment of four power plants with capacity to generate 1200 MW each, by the commission. He said modular nuclear reactor is the way to go, especially with the way the government has decentralised the sector. 'This is an area that states can benefit from. A lot of investment has gone into the development of the commission over the years and Nigeria should start reaping from the investment', he said. According to him, although the process is tedious and costly, the outcome is more beneficial to the country adding that nuclear power plant is an advanced stage of energy generation. 'I wish we are there already in this country, but we are not there yet. We should however ask ourselves, how much of the conventional source of energy have we exploited 'Nuclear power plant tends to be at the lower end of concern over the years, but we have to understand that nuclear energy is the future of energy generation'. He recognised that there had not been much done in areas of collaboration between the ministry and the commission. ' We have not been having this rapport in the past, but I'm happy we are starting from somewhere now and I believe that we will sustain it for the overall benefit of our country. This is an advanced level of energy generation, but we must also embrace it because whatever that can add value to our power sector, we must embrace. 'As we all know, leaders would naturally want projects that would materialise in their time in office but any serious government will know that this is the future of the sector. 'Nuclear energy is the future of power generation. So we must partner with you on how to improve the sector and this meeting is a right step in the right direction. We have formally established a relationship with you and we have so much to benefit from each other', the minister said. He proposed a workshop by both the ministry and the commission with other stakeholders in the power sector in attendance in order to brainstorm on how the collaboration can be better sustained and beneficial. 'As we all know, this is not a cheap thing but we can start with a workshop where experts from your side and our side will brainstorm and work out how we can further benefit from each other. We are reforming the power sector and this will be the most appropriate time for this kind of collaboration as states are now having their own power projects. This is certainly for the future of this country and it is important we make progress on it', Adelabu said. Earlier, Ekedawa briefed the minister on the activities of the commission, which he said was established in 1976, by former President Olusegun Obasanjo as a military's head of state. He said, as a renewable energy, nuclear energy could power the entire country. He said the Commission is proposing the establishment of nuclear power plants with the capacity to generate about 1200MW. 'We want to work and partner with you in the area of power generation. We can be a base load for the country and we have two possible sites, Geregu in Kogi State and Idu in Akwa Ibom State. We have carried out the feasibility studies. This collaboration is part of our energy policy, but we are however limited by resources to undertake this project', Ekedewa said. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
06-05-2025
- Business
- Zawya
FEC approves roadmap for Nigeria's power sector
The Federal Government has formally ratified and adopted a roadmap for the Nigerian Electricity Supply Industry (NESI) by approving the National Integrated Electricity Policy (NIEP). The Policy which had been ready since December 2024 and submitted to President Bola Ahmed Tinubu was ratified on Monday at the weekly Federal Executive Council (FEC) meeting. The policy is a comprehensive framework designed to transform Nigeria's electricity sector in alignment with National development objectives and international best practices as mandated by Section 3(3) of the revised Electricity Act 2023. According to a statement by Bolaji Tunji, Special Adviser, Strategic Communications and Media Relations, quoting the Minister of Power, Chief Adebayo Adelabu, the Policy implementation has already started and will now gain momentum with the President's approval while the impact would soon be felt adding that the Electricity Act 2023 requires the Federal Government through the Ministry of Power to initiate the process for the preparation and publication in the Federal Government's gazette, an integrated National Electricity Policy and Strategic Implementation Plan, within one year of the commencement of the Electricity Act. 'The road map Policy addresses critical challenges in Nigeria's electricity sector through comprehensive framework for sector transformation with clear guidelines for sustainable power generation, transmission distribution as well as integration of renewable energy sources, its promotion, energy efficiency and enhancement of sector governance', the minister said. Adelabu described the passage of the Electricity Act 2023 as a pivotal moment for the Electricity sector as it signals a transformative change which has laid the foundation for NESI, thus enabling exponential socio-economic growth. 'This National Integrated Electricity Policy and Strategic Implementation Plan (NIEP) is a comprehensive roadmap developed to guide all stakeholders, the Federal and State Governments, market participants, investors, and indeed all Nigerians, through this transition.' The minister said the preparation of the Policy represents the collective efforts of the Ministry in collaboration with a wide cross-section of stakeholders across the public and private sectors at national and state levels, civil society organizations, academic institutions, captains of industry, donor partners, development institutions, private sector participants and consumer advocacy groups, to address the complex challenges faced by NESI, from infrastructure deficits, inadequate capital to regulatory inefficiencies. 'The NIEP is a very significant evolution from the National Electric Power Policy of 2001, which has been long overdue for replacement. The Policy outlines various initiatives to aid the growth and development of State Electricity Markets (SEMs). 'It fosters a decentralised but collaborative approach to energy management and resource planning. This policy is a living document that will evolve with the Industry's needs and challenges. It underscores the importance of collaboration, innovation, and a steadfast commitment to consumer protection and engagement.' The Policy is structured across eight chapters which comprehensively address the historical perspective of the Nigeria Electricity Sector, focus on key features of the Electricity Act 2023, Nigeria's electricity Policy objectives, electricity market design, value chain analysis, stakeholders' roles and responsibilities, climate change and low carbon economy initiatives, gender equality and social inclusion, local content development including research and development, commercial, legal and regulatory frameworks.
Yahoo
21-04-2025
- Business
- Yahoo
Nigeria reduces electricity subsidies by 35% following tariff hike for heavy users
Nigeria has achieved a 35% reduction in electricity subsidies after last year's tariff increase for certain consumers, as announced by Power Minister Adebayo Adelabu, reported Reuters. The country, which is Africa's most populous, has been grappling with a power sector plagued by an unreliable grid, gas shortages, and financial challenges. Nigeria was previously allocating nearly N200bn ($125.01m) monthly to electricity subsidies due to non-commercially viable tariffs. The government's decision to remove subsidies for the top 15% of electricity consumers, encompassing both households and businesses with high consumption rates, has led to a substantial financial turnaround. During a press briefing in Abuja, Adelabu highlighted the positive impact of the targeted tariff adjustment with "the market generating an additional N700bn in revenue, reflecting a 70% increase.' This strategic move has not only alleviated the financial burden on the state but also contributed to improved power generation and a reduction in the government's tariff shortfall from N3tn to N1.9tn. Despite these advancements, Nigeria's power sector continues to face significant challenges. With an installed capacity of 13GW, the country often produces just one-third of this potential, leading to a heavy reliance on expensive alternative power sources. The Nigeria Sovereign Investment Authority (NSIA), Sustainable Energy for All (SEforALL), the International Solar Alliance (ISA), and Africa50 have recently introduced the $500m Distributed Renewable Energy (DRE) Nigeria Fund. The fund is designed to support the development and financing of DRE projects within Nigeria. It will concentrate on investments in mini-grids, solar home systems, commercial and industrial power solutions, embedded generation projects, and innovative energy storage technologies. The goal is to deliver more reliable and cost-effective power to Nigerian homes and businesses, furthering the country's journey towards energy sustainability. "Nigeria reduces electricity subsidies by 35% following tariff hike for heavy users" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Zawya
18-04-2025
- Business
- Zawya
Nigeria: Power sector got $436mln boost in revenue in 2024 — Adelabu
Nigeria's power sector has recorded a significant leap in revenue generation, with an additional ₦700 billion realised in 2024, marking a 70% increase year-on-year. This was disclosed by the Minister of Power, Adebayo Adelabu, during a ministerial press briefing held on Thursday in Abuja, where he highlighted key achievements of the ministry under the Renewed Hope Agenda of President Bola Ahmed Tinubu. The Minister attributed this landmark growth to recent cost-reflective tariff reforms targeted at Band A customers, which raised total market revenue from ₦1 trillion in 2023 to ₦1.7 trillion in 2024. 'This growth is unprecedented,' he noted. 'It is the first time we're witnessing such a sharp increase, far above the previous record of 20%. More importantly, this has led to a 35% reduction in the government-subsidised tariff shortfall – down from ₦3 trillion to ₦1.9 trillion. It demonstrates that financial viability and service delivery can coexist harmoniously.' Speaking on broader sector reforms, Adelabu pointed to the formulation of two critical frameworks – the National Integrated Electricity Policy (NIEP) and the Integrated Resource Plan (IRP)- as pivotal steps in redefining Nigeria's energy future. Both frameworks, he said, are geared towards building a cost-effective and sustainable electricity ecosystem and have been submitted to the Federal Executive Council for approval. Other highlights of the past 100 days include the inauguration of the National Independent System Operator (NISO) to unbundle the Transmission Company of Nigeria, as mandated by the Electricity Act of 2023. The new entity will oversee grid operations independently, aimed at boosting efficiency and market transparency. The sector also achieved a milestone generation capacity of 6,003MW, the highest in Nigeria's history, with an average daily generation of 5,700MW in early 2025, compared to 4,100MW in Q3 of 2023 – representing a 40% increase. 'What took four decades to achieve in terms of 2,000MW of additional power, we have delivered in under two years,' the Minister said. Further gains were reported in transmission stability. 'Despite persistent grid disturbances last year, we have not recorded a major grid collapse in the first quarter of 2025,' he said, citing completed transformer installations and mobile substations across over 12 states. The Ministry also spotlighted gains in renewable energy and rural electrification, including new off-grid and mini-grid projects across Plateau, Niger, Cross River, Osun, and Oyo States, providing clean electricity to thousands of households. Additionally, investments are underway to evacuate full capacities from key hydropower stations like Zungeru and Kashimbila, while the Kaduna Thermal Plant is being restored after six years of dormancy. Adelabu reaffirmed the government's commitment to partnering with the private sector, noting that proposals from Sun Africa Energy and Skipper Electric to scale up solar power and grid expansion are currently under review. 'Our vision is bold, but it is achievable – a Nigeria where power no longer hampers progress but powers it,' he stated. Adelabu assured power generation companies (GenCos) that the federal government will pay at least ₦2 trillion of the ₦4 trillion debt owed them before the end of 2025 in a bid to avert potential disruptions to electricity supply. His remarks follow threats by GenCos to declare force majeure on their operations if the mounting debt remains unpaid. While acknowledging the financial strain, Adelabu said the government may not be able to clear the entire amount immediately but is committed to defraying half the liability by year's end. He explained that the payment would be made through a mix of cash and promissory notes, the latter of which can be discounted by banks to provide GenCos with immediate liquidity. 'We're not promising 100% payment, but we're working to settle close to ₦2 trillion of the debt this year,' Adelabu stated during a briefing. 'There are already budgetary provisions for cash disbursement, and we're also discussing the issuance of guaranteed debt instruments, such as promissory notes, which the GenCos can take to banks for discounting if they need quick access to funds.' The minister clarified that the debt stems from unpaid subsidies, with nearly half inherited from previous administrations and the rest accumulating from ongoing operations in 2024. 'This issue has been of serious concern to us,' Adelabu said. 'I've had tough discussions with the Minister of Finance and the Coordinating Minister for the Economy, who confirmed that work is ongoing to finalise the promissory notes. Once budget releases are made, cash payments will follow.' He also acknowledged broader challenges confronting the power sector, including the ₦4 trillion debt burden, vandalism of infrastructure, and a lack of sufficient investment. Despite these issues, Adelabu reaffirmed the Tinubu administration's commitment to clearing all inherited liabilities and restoring investor confidence in the sector. 'The administration is determined to turn things around. Clearing these debts is a critical step toward stabilising the sector and attracting much-needed investment,' he added. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
